HBL Engineering Ltd logo

HBL Engineering Ltd

HBLENGINE NSE

Incorporated in 1983, HBL Power System Ltd manufactures and services different types of batteries, e-mobility, and other products[1]

AI Verdict: BUY Confidence: 6%

HBL Engineering delivers exceptional growth with 118% profit CAGR over 5 years and 45% ROE last year, while remaining almost debt-free. However, the stock trades at 10x book value and 27.4x earnings, demanding sustained execution. The growth momentum and clean balance sheet justify a cautious BUY for investors with a 2-3 year horizon.

Key Fundamentals

SmallcapAuto ComponentsAutomobiles
Market Cap
₹22,988 Cr
Volatility
Moderate
P/E Ratio
28.14
EBITDA
₹1,082 Cr
Return on Equity
10.35%
Debt to Equity
0.05
Book Value
₹79.88
EPS
₹11.84
52W High
₹1,122
52W Low
₹551.6

Technical Indicators

Key Insights

Strengths

4
  • Company is almost debt free.
  • Company is expected to give good quarter
  • Company has delivered good profit growth of 118% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 33.1%

Weaknesses

1
  • Stock is trading at 10.3 times its book value

Growth Rate

Revenue Growth
65.70% ↗
Net Income Growth
186.35% ↗
Cash Flow Change
-11.52% ↘
ROE
-18.84% ↗
ROCE
-17.71% ↗
EBITDA Margin (Avg.)
53.38% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
BUY
Risk medium

HBL Engineering delivers exceptional growth with 118% profit CAGR over 5 years and 45% ROE last year, while remaining almost debt-free. However, the stock trades at 10x book value and 27.4x earnings, demanding sustained execution. The growth momentum and clean balance sheet justify a cautious BUY for investors with a 2-3 year horizon.

Bull Case 8
  • Exceptional profit growth of 118% CAGR over 5 years demonstrates strong operational leverage and scalability
  • Last year ROE of 45% is outstanding for an industrial company, indicating highly efficient capital deployment
  • Company is almost debt-free, providing financial flexibility and resilience against rising interest rate cycles
  • TTM sales growth of 68% indicates robust order book execution and strong demand environment
  • TTM profit growth of 201% shows margin expansion well beyond revenue growth, suggesting operating leverage kicking in
  • 3-year ROE of 33% sustained over multiple years confirms this is not a one-off spike but structural improvement
  • Stock CAGR of 76% over 3 years reflects market recognition of the business transformation underway
  • 10-year compounded profit growth of 49% shows the company has a long track record of value creation, not just a recent phenomenon
Bear Case 8
  • Stock trades at 10.07x price-to-book, which is extremely expensive for an industrial company and leaves no margin of safety
  • PE ratio of 27.4x prices in significant future growth; any execution miss could trigger sharp de-rating
  • Zero analyst coverage (0 buy, 0 hold, 0 sell ratings) means limited institutional scrutiny and potential liquidity risk
  • Dividend yield of just 0.25% suggests minimal shareholder returns relative to market cap of Rs 22,867 Cr
  • 5-year stock CAGR of 78% has already priced in much of the growth story, limiting upside from current levels
  • 10-year sales CAGR of only 10% indicates the high recent growth is a recent acceleration that may not sustain at this pace
  • 52-week high and low data unavailable, making it difficult to assess current price positioning and technical risk
  • At Rs 22,867 Cr market cap with 68% TTM sales growth, any slowdown in order inflows could make current valuation unsustainable

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 1d ago
Positives 3
  • ₹1,714 Cr KAVACH order from CLW May 29

    HBL Engineering secured a ₹1,714 crore order from Chittaranjan Locomotive Works for supply, installation, testing, and commissioning of On-board KAVACH Loco equipment (Version 4.0), to be completed within 12 months.

  • FY26 net profit surges 198% YoY May 25

    Standalone net profit rose 198% YoY to ₹796.79 crore for FY26, driven by a 67% revenue increase to ₹3,251.80 crore. Board recommended ₹1 per share final dividend with AGM on September 26, 2026.

  • Q4 FY26 profit up 41.8% May 29

    Consolidated net profit rose 41.8% to ₹63.75 crore in Q4 FY26, while revenue from operations grew 27.0% to ₹604.12 crore YoY. Stock rose 2.30% to ₹817.50 on the news.

Neutral 1
  • Zero promoter share encumbrance Jun 19

    HBL Engineering disclosed that promoters held no encumbered shares as of March 31, 2026, confirming compliance with SEBI takeover regulations.

TL;DR: HBL Engineering is firing on all cylinders with a massive ₹1,714 crore KAVACH railway order and exceptional FY26 financials showing 198% profit growth and 67% revenue growth. No material headwinds are visible — promoter holding is unencumbered and order flow in railway/defence electronics remains strong. The trend is clearly improving, with large government-backed railway safety orders providing multi-year revenue visibility.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
403
467
557
599
610
520
521
451
476
602
1,223
874
604
Expenses
358
390
456
486
479
410
412
357
396
410
679
572
529
Operating Profit
45
78
101
113
131
110
109
94
79
192
544
302
75
OPM %
11%
17%
18%
19%
22%
21%
21%
21%
17%
32%
44%
35%
12%
Other Income
4
3
3
2
-19
5
12
2
6
17
-8
10
10
Interest
3
2
3
3
4
2
3
5
4
6
3
3
2
Depreciation
10
10
10
11
11
11
11
11
11
12
12
12
15
PBT
36
69
91
102
98
103
107
79
71
191
520
297
67
Tax %
3%
25%
26%
23%
33%
26%
29%
26%
26%
26%
26%
27%
23%
Net Profit
35
52
68
79
81
80
87
65
45
143
387
220
64
EPS in Rs
1.26
1.87
2.48
2.85
2.94
2.89
3.15
2.33
1.62
5.17
13.97
7.96
2.3
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
1,349
1,299
1,414
1,603
1,266
1,092
912
1,236
1,369
2,233
1,967
3,303
Expenses
1,210
1,164
1,286
1,477
1,169
1,011
845
1,097
1,217
1,810
1,574
2,190
Operating Profit
139
134
129
126
97
81
67
139
151
423
393
1,113
OPM %
10%
10%
9%
8%
8%
7%
7%
11%
11%
19%
20%
34%
Other Income
9
12
21
16
21
22
6
26
20
8
38
28
Interest
71
68
46
41
31
22
15
7
7
13
13
15
Depreciation
53
51
48
46
44
41
39
35
35
41
44
51
PBT
24
27
54
55
43
40
19
122
130
377
374
1,075
Tax %
43%
45%
29%
42%
35%
35%
29%
23%
24%
26%
26%
26%
Net Profit
14
15
38
32
28
26
14
94
98
280
276
814
EPS in Rs
0.56
0.59
1.53
1.14
1
0.95
0.5
3.39
3.56
10.13
9.99
29.4
Div. Payout %
36%
42%
18%
22%
30%
32%
71%
12%
13%
5%
10%
3%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
25
25
28
28
28
28
28
28
28
28
28
28
Reserves
539
584
701
724
739
745
754
838
924
1,193
1,455
2,187
Borrowings
686
549
479
366
232
161
70
63
86
67
74
67
Other Liabilities
311
277
258
224
162
169
184
204
257
366
422
661
Total Liabilities
1,562
1,435
1,467
1,342
1,161
1,103
1,036
1,133
1,294
1,654
1,980
2,942
Fixed Assets
456
415
417
363
321
304
279
265
320
354
397
441
CWIP
49
48
33
26
37
27
43
81
50
20
68
127
Investments
2
8
8
5
5
6
7
8
9
108
290
402
Other Assets
1,054
964
1,008
947
797
766
707
779
915
1,171
1,225
1,972
Total Assets
1,562
1,435
1,467
1,342
1,161
1,103
1,036
1,133
1,294
1,654
1,980
2,942
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
79
158
43
159
167
149
121
62
122
270
239
738
Investing
-13
-10
60
-8
1
-6
-32
-17
-50
-137
-320
-214
Financing
-66
-153
-114
-150
-163
-114
-104
-22
10
-42
-26
-113
Net Cash Flow
0
-5
-11
1
5
29
-14
23
82
91
-107
411
Free Cash Flow
62
144
5
149
168
140
86
41
68
204
120
618
CFO/OP
60
125
41
149
192
201
184
65
105
85
86
93
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
106
120
122
103
105
102
102
86
83
58
69
71
Inventory Days
226
185
168
126
145
162
188
149
147
137
201
148
Days Payable
81
77
68
43
34
41
44
42
43
41
68
49
Cash Conversion Cycle
252
228
222
186
216
222
246
193
188
154
202
171
Working Capital Days
57
55
66
73
104
121
149
126
117
81
106
100
ROCE %
8%
8%
8%
9%
6%
6%
4%
13%
14%
36%
27%
58%

Shareholding Pattern

As of Mar 2026
Promoters 59.11%
Public 29.01%
FIIs 5.94%
Others 5.14%
DIIs 0.79%
Total 99.99%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
58.51%
58.60%
58.60%
58.95%
58.97%
58.97%
58.97%
59.02%
59.08%
59.10%
59.11%
59.11%
59.11%
59.11%
59.11%
59.11%
59.11%
59.11%
59.11%
59.11%
59.11%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
2.23%
0.00%
4.59%
4.65%
4.90%
5.22%
4.83%
4.83%
7.10%
5.87%
5.94%
DIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.02%
0.01%
0.14%
0.08%
0.05%
0.66%
1.07%
0.97%
0.39%
0.36%
0.36%
0.65%
0.82%
0.79%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
19.06%
18.62%
19.06%
18.50%
20.48%
24.07%
30.60%
34.77%
34.33%
32.70%
33.54%
32.95%
31.24%
30.83%
30.25%
30.41%
30.22%
30.22%
28.09%
29.18%
29.01%
Others
22.43%
22.78%
22.34%
22.55%
20.55%
16.96%
10.43%
6.19%
6.58%
8.07%
5.04%
7.89%
4.40%
4.34%
4.77%
4.87%
5.47%
5.47%
5.04%
5.02%
5.14%
No. of Shareholders
77,508
93,782
1,06,294
1,18,833
1,41,740
1,51,017
1,67,040
1,76,536
1,71,714
1,79,444
2,21,392
2,42,385
2,87,032
3,32,912
3,68,688
3,58,798
3,81,826
3,81,826
3,26,066
3,42,335
3,40,740

Documents

Frequently Asked Questions about HBL Engineering Ltd

What does HBL Engineering Ltd do?
Incorporated in 1983, HBL Power System Ltd manufactures and services different types of batteries, e-mobility, and other products[1]
Where is HBL Engineering Ltd (HBLENGINE) listed?
HBL Engineering Ltd is listed on the Indian stock exchanges. It is listed on NSE: HBLENGINE and BSE: 517271. You can view its live share price, financials, and ratios on Tapetide.
Which sector does HBL Engineering Ltd belong to?
HBL Engineering Ltd operates in the Industrials sector within the Industrial Products industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of HBL Engineering Ltd?
HBL Engineering Ltd has a market capitalisation of approximately ₹22987.78 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of HBL Engineering Ltd?
The Price-to-Earnings (PE) ratio of HBL Engineering Ltd is 28.14. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of HBL Engineering Ltd?
Over the past 52 weeks, HBL Engineering Ltd has traded between a low of ₹551.6 and a high of ₹1,122. This range helps investors understand the stock's price volatility and recent trading levels.
Does HBL Engineering Ltd pay dividends?
Yes, HBL Engineering Ltd has a dividend yield of 0.24%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of HBL Engineering Ltd?
HBL Engineering Ltd has a Return on Equity (ROE) of 10.35%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research HBL Engineering Ltd on Tapetide?
On Tapetide, you can view HBL Engineering Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Incorporated in 1983, HBL Power System Ltd manufactures and services different types of batteries, e-mobility, and other products[1]

Website hbl.in
CEO Dr. Aluru Jagadish Prasad
Employees 2,152
Listed 2007-01-04
Face Value ₹ 1
Issued Size 27,71,94,946

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